Friday, August 27, 2010

Bernanke Must Have Swept the Street...

... before his speech. I'm not complaining though. We're the girl on top today. My portfolio got catapulted up a knotch and my Roth IRA beat the S&P slightly.



+1.33% on the SBA

+1.97% on the Roth IRA



My only regret is having sold my Crown Prince and now what was once my hottest position has taken a potential downturn. I sold part of C at $3.90 and part of C at $3.68. I kept part of C in both portfolios. I also jumped in with CENX at $10.25, keeping part of my moola as cold, hard cash. I inadvertently became a bear in hindsight and looking back on what happened after Lehman, it took about six months for the dust to settle down. This time around, we saw selling since late April and we're now four months into the sell-off. Over the weekend, I'm going to analyse some individual stocks to see if I gain any insight. We've got to do our own homework.



Stabilisation should start occurring soon, but in case I'm wrong again, I'm going to continue using forex to hedge my equities portfolio. And within my equities portfolio, I'm going to move back and forth between high beta and high dividend stocks.



Now getting back to the financial hypocrisy... doesn't anyone ever think if Bernanke & Co. would just keep their lips sealed, we would have already seen a very strong recovery? All of the market volatility is actually being caused by our FWFOCH. Trichet probably sold the EUR/USD at 1.57 and Bernanke probably bought all the US equities market bottoms.



Who knows? All I know is that even though he hit a homerun today, I still hate his batting average and don't get how he gets to go down in history as the one who saved Wall Street... Now books like F Wall Street are in fashion. I do own a copy, but haven't read it yet.



Next week, I'll hopefully get to be a major market slut again by jumping from trade to trade.



I reckon it'll be much more profitable than sitting out on the bench. There was a ridiculous article in FT about how all of the money flowed out of equities into bonds and that retail investors have got it right this time. The authors clearly got burned in the equities market or have loaded up on bonds themselves. Plus, back when no one wanted to be in Treasurys, the banks have already loaded up on bonds and are now cashing in on what could turn out to be a very mediocre investment for the retail investors who bought bonds at very high prices. Let's see what happens when Prime Time comes around later on in the year. The final trading quarter is when things start to heat up in the equities market. If Wall Street swept the street, then it can only be a matter of time before I become Queen again...



And if not, then I've got my forex hedging strategy as well.



And yes, this was written by a very bitter woman who clearly got burned in the equities market and have loaded up on bonds.

Happy Weekend, Fellow Stop Runners!

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